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Afghan Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Afghan Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Afghanistan’s defense spending is set to increase significantly as the country sets out to completely overhaul its national infrastructure and defense industry. The US invasion of Afghanistan after the September 2001 attacks led to the formation of a democratic government which is now focusing on the total revamp of its national infrastructure and defense industry. As per the US declared aim, US troops plan to draw down and suitably transfer responsibilities to the Afghan National Army (ANA) in a phased manner before exiting. The US promised to withdraw half of its troops from Afghanistan by the end of April 2019.Afghanistan contributes a minimal amount to its national security and defense budget. Furthermore, the lack of a developed indigenous defense industry means that even basic military needs, from boots to ammunition, must be sourced from abroad, often at a higher cost. Threats rising from the Taliban’s frequent attacks and illegal drug traders are key factors in Afghanistan’s efforts to boost its combat readiness. However, constant unrest has hampered the capability of its defense industry, making the country reliant on imports.Afghanistan’s total defense expenditure increased at a CAGR of 0.40% during the historic period, from US$6.2 billion in 2015 to US$6.3 billion in 2019. The country’s total defense expenditure is forecast to increase at a CAGR of 6.67% over 2020-2024, from US$6.3 billion in 2019 to US$8.8 billion in 2024. US aid to Afghanistan is expected to increase through the forecast periodOver the forecast period, aid is projected to continue to increase gradually reaching US$6.2 billion in 2024, owing to the need to fund Afghanistan’s defense modernization program. US aid also aims to enable more meaningful changes to society as the country announced more than US$61 million in additional humanitarian assistance to meet the needs of vulnerable communities, displaced persons and returning refugees across Afghanistan, as well as Afghan refugees in the region.Afghan Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news.This report offers detailed analysis of the Afghan defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

Key Findings of the report -

  • Afghanistan’s defense spending is set to increase significantly as the country sets out to completely overhaul its national infrastructure and defense industry.
  • The US invasion of Afghanistan after the September 2001 attacks led to the formation of a democratic government which is now focusing on the total revamp of its national infrastructure and defense industry.
  • As per the US declared aim, US troops plan to draw down and suitably transfer responsibilities to the Afghan National Army (ANA) in a phased manner before exiting.
  • The US promised to withdraw half of its troops from Afghanistan by the end of April 2019.
  • Afghanistan’s total defense expenditure increased at a CAGR of 0.40% during the historic period, from US$6.2 billion in 2015 to US$6.3 billion in 2019.
Scope
  • The Afghan defense industry market size and drivers: detailed analysis of the Afghan defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Market opportunities: list of the top ten defense investment opportunities over the next 5 years.
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Afghan defense industry.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Afghan defense industry market trends for the coming five years.
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.
  • A deep qualitative analysis of the Afghan defense industry covering sections including demand drivers, key trends and latest industry contracts.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
    • About GlobalData
  • Executive Summary
    • Table Figure 1: Afghanistan's Defense Budget: 2020 and 2024
    • Table Figure 2: Afghanistan's Defense Imports/Exports: 2014 and 2018
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: Afghanistan's Top Prospective Procurements/Developments
    • Current Market Scenario
      • Primary Threat Perception
        • Table Figure 4: Afghanistan's National Security Threats
      • Military Doctrine and Strategy
      • Procurement Programs
        • Table Afghanistan's Ongoing Procurement Programs
        • Table Afghanistan's Future Procurement Programs
        • Table Top Afghan Defense Procurement Programs by Value (US$ Million), 2019-2024
      • Geopolitical, Social and Economic Scenario
      • Political and Strategic Alliances
        • Table Figure 5: Afghanistan's Partnering Countries for Defense Cooperation and Military Training
    • Defense Market Size Historical and Forecast
      • Afghanistan's defense expenditure is expected to register a CAGR of 8.77% over 2020-2024
        • Table Afghanistan's Defense Expenditure (AFN Billion and US$ Billion), 2015-2024
        • Table Figure 6: Afghanistan's Defense Expenditure (AFN Billion), 2015-2024
        • Table Figure 7: Afghanistan's Defense Expenditure (US$ Billion), 2015-2024
      • US aid to Afghanistan is expected to increase over the forecast period
        • Table US Aid to Afghanistan (US$ Billion), 2015-2024
        • Table Figure 8: US Aid to Afghanistan (US$ Billion), 2015-2024
      • The resurgence of the Taliban, the ongoing war against terrorism and the capacity building of Afghan forces is expected to fuel defense expenditure over the forecast period
      • Afghan defense expenditure as a percentage of GDP expected to increase considerably over the forecast period
        • Table Afghanistan's GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
        • Table Figure 9: Afghanistan's GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015- 2024
    • Analysis of Defense Budget Allocation
      • Capital expenditure's share is anticipated to decrease over forecast period
        • Table Afghanistan's Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
        • Table Figure 10: Afghanistan's Budget Split Between Capital and Revenue Expenditure (%), 2015- 2024
      • Capital expenditure expected to increase at a CAGR of 1.60% over the forecast period
        • Table Afghanistan's Defense Capital Expenditure (AFN Billion and US$ Billion), 2015-2024
        • Table Figure 11: Afghanistan's Defense Capital Expenditure (AFN Billion), 2015-2024
        • Table Figure 12: Afghanistan's Defense Capital Expenditure (US$ Billion), 2015-2024
      • Per capita defense expenditure anticipated to increase over the forecast period
        • Table Afghanistan's Per Capita Defense Expenditure (US$), 2015-2024
        • Table Figure 13: Afghanistan's Per Capita Expenditure (US$), 2015-2024
    • Homeland Security Market Size and Forecast
      • Afghanistan's homeland security budget is set to increase at a CAGR of 3.31% over the forecast period
        • Table Afghanistan's Defense Homeland Security Expenditure, 2015-2024
        • Table Figure 14: Afghanistan's Defense Homeland Security Expenditure (AFN Billion), 2015-2024
        • Table Figure 15: Afghanistan's Defense Homeland Security Expenditure (US$ Billion), 2015-2024
      • Homeland security expenditure to be triggered by the country's efforts to counter the drug trade and human trafficking
    • Benchmarking Against Key Global Markets
      • Afghanistan's defense expenditure expected to grow significantly over forecast period
        • Table Benchmarking with Key Markets - 2015-2019 vs 2020-2024
        • Table Figure 16: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
      • Afghanistan's defense expenditure is low compared to other Asian countries
        • Table Figure 17: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2019 and 2024
      • Afghanistan allocates a higher share of GDP to defense compared to other Asian countries
        • Table Figure 18: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
    • Market Opportunities: Key Trends and Growth Stimulators
      • Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019- 2024
        • Table Top Afghan Defense Market Sectors by Value (US$ Million), 2019-2024
      • Land-based C4ISR
        • Table Figure 19: Land-based C4ISR Market Size (US$ Million), 2019-2024
      • Soldier Modernization - C4ISR
        • Table Figure 20: Soldier Modernization - C4ISR Market Size (US$ Million), 2019-2024
      • Tactical Communications - Man-Portable
        • Table Figure 21:Tactical Communications - Man-Portable Market Size (US$ Million), 2019-2024
  • Defense Procurement Market Dynamics
    • Table Figure 22: Top Afghan Defense Procurements in Terms of Their Supplier Relationships
    • Import Market Dynamics
      • Afghanistan relies on defense imports from foreign countries
        • Table Figure 23: Afghanistan's Defense Imports (US$ Million), 2014-2018
      • The US emerged as the largest suppliers of arms
        • Table Figure 24: Afghanistan's Defense Imports by Country (%), 2014-2018
      • Armored vehicles and aircraft dominate Afghanistan's military imports
        • Table Figure 25: Afghanistan's Defense Imports by Weapon Category (%), 2014-2018
    • Export Market Dynamics
      • Afghanistan's domestic defense manufacturing is expected to be nil over the forecast period
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 26: Industry Dynamics Porter's Five Forces Analysis
      • Bargaining Power of Supplier: Medium
      • Bargaining Power of Buyer: Medium
      • Barrier to Entry: Low
      • Intensity of Rivalry: Medium
      • Threat of Substitution: High
  • Market Entry Strategy
    • Budget process
      • Table Afghanistan's Budgeting Process
    • Procurement Policy and Process
    • Market Regulation
      • Afghanistan has not disclosed an FDI policy or investment regulations
      • Offset obligation not disclosed by the government
    • Market Entry Route
      • Equipment manufacturers can enter the market through government-togovernment deals
    • Key Challenges
      • Table Figure 27: Key Challenges in Afghanistan's Defense Market
      • Corruption and malpractices
      • Lack of skilled labor
      • Limited defense budget
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Top Defense Suppliers in the Afghan Defense Industry By Value (US$ Million), 2019- 2024
      • Afghanistan Market Share Analysis
        • Table Figure 28: Afghanistan Market Share Analysis, 2018
        • Table Competitive Landscape of the Afghan Defense Market
    • Key Companies
      • General Dynamics: Overview
      • General Dynamics: Products
        • Table General Dynamics - Products
      • General Dynamics: Recent Contract Wins
        • Table General Dynamics - Recent Contract Wins
      • Sierra Nevada Corporation: Overview
      • Sierra Nevada Corporation: Products
        • Table Sierra Nevada Corporation - Products
      • Sierra Nevada Corporation: Recent Announcements and Strategic Initiatives
      • Sierra Nevada Corporation: Alliances
        • Table Sierra Nevada Corporation - Alliances
      • Sierra Nevada Corporation: Recent Contract Wins
        • Table Sierra Nevada Corporation - Recent Contract Wins
      • Lockheed Martin Corp.: Overview
      • Lockheed Martin Corp.: Products and Services
        • Table Lockheed Martin Corp. - Products and Services
      • Lockheed Martin Corp.: Recent Announcements and Strategic Initiatives
      • Lockheed Martin Corp.: Recent Contract Wins
        • Table Lockheed Martin Corp. - Recent Contract Wins
      • MD Helicopters: Overview
      • MD Helicopters: Products and Services
        • Table MD Helicopters - Products and Services
      • MD Helicopters: Recent Announcements and Strategic Initiatives
      • MD Helicopters: Recent Contract Wins
        • Table MD Helicopters - Recent Contract Wins
  • Business Environment and Country Risk
    • Economic Performance
      • GDP Per Capita
        • Table Figure 29: Afghanistan's GDP Per Capita, 2015-2025 (US$)
      • GDP, Current Prices (US$ Billion)
        • Table Figure 30: Afghanistan's GDP, Current Prices (US$ Billion), 2015-2025
      • Local Currency Unit per US Dollar
        • Table Figure 31: Local Currency Unit per US$ - Exchange Rate, 2015-2024
      • Exports of Goods and Services (LCU)
        • Table Figure 32: Afghanistan's Exports of Goods and Services (LCU Billion), 2005-2014
      • Imports of Goods and Services (LCU)
        • Table Figure 33: Afghanistan's Imports of Goods and Services (LCU Billion), 2005-2014
      • Goods Exports as a Percentage of GDP
        • Table Figure 34: Afghanistan's Goods Exports as a Percentage of GDP, 2008-2013
      • Goods Imports as a Percentage of GDP
        • Table Figure 35: Afghanistan's Goods Imports as a Percentage of GDP, 2008-2013
      • Service Imports as a Percentage of GDP
        • Table Figure 36: Afghanistan's Service Imports as a Percentage of GDP, 2008-2013
      • Service Exports as a Percentage of GDP
        • Table Figure 37: Afghanistan's Service Exports as a Percentage of GDP, 2008-2013
      • Government Cash Surplus/Deficit as a Percentage of GDP
        • Table Figure 38: Government Cash Surplus/Deficit as a Percentage of GDP (LCU), 2008-2012
      • Net Foreign Direct Investment
        • Table Figure 39: Afghanistan's Foreign Direct Investment, Net (BoP, Current US$ Billion), 2008- 2013
      • Net Foreign Direct Investment as a Percentage of GDP
        • Table Figure 40: Afghanistan's Net Foreign Direct Investment as a Percentage of GDP, 2008-2013
      • Mining, Manufacturing, Utilities Output (LCU Billion)
        • Table Figure 41: Afghanistan's Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
  • Appendix
    • Disclaimer

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